If you’re in the business of selling and installing communication equipment, you’ll want to make sure you’re properly insured. In this article, we’ll cover the Basics of General Liability Coverage, Exclusions, Premiums, and Disclosures. You’ll also learn about Exclusions from coverage, which may include equipment and software. Ultimately, it’s up to you to decide which level of protection is best for your company.
General liability coverage
When you are installing communication equipment for a business, you need to carry General Liability Insurance to protect yourself and your employees from 3rd party claims and jury awards. Even a minor mishap can have devastating consequences, and one lawsuit can put your business out of business. General liability insurance will cover your business from legal bills if you are sued for negligence or if someone is injured due to your faulty work.
Exclusions from coverage
A property policy typically includes certain exclusions, and communication equipment installation insurance is no exception. Some exclusions pertain to the kind of work performed, while others apply to equipment failure. For example, coverage for equipment failure does not cover any property damage caused by a fire. This exclusion can be eliminated by adding an endorsement to your policy. Some coverage includes earthquake and flood damage coverage, but not other forms of physical damage.
The cost of premiums for communication equipment installation insurance can vary widely. For example, a telecom construction company with a payroll of $500,000 would pay between $50,000 and $125,000 annually. But the costs can vary dramatically depending on the state of operation, loss experience and payroll in each class code. Moreover, some clients require between $5 million and $10 million liability coverage. In such cases, the contractor must balance thin margins with increased costs.
Covered entities must provide certain information regarding their communications equipment insurance policies to their clients. Upon request, covered entities would have 30 days to respond. They can, however, use a one-time extension for additional time. The disclosures must be in the format requested, whether in readable hard copy or other format. In some cases, a covered entity may choose to limit the scope of the information provided. The Department of Insurance will monitor compliance with the circular letter requirements. Noncompliance could result in actions against the issuer.
If you’re in the business of installing communications equipment, you should consider the limits of your insurance policy. You might be required to carry general liability in your state or county if you operate as a Communication Equipment Contractor. A PBIB certificate is a good choice if you’re available Monday through Friday. Self-service certificates are also available around the clock. If you’re not sure whether your insurance policy covers what you do, check with your state’s business licensing board.